Fan Cheuk Wan, Managing Director, Head of Research Asia Pacific, Private Banking Division, Credit Suisse in an interview with ET Now discusses

Analysts’ take on mkts Let an expert guide the investor in you Gainers & Losers

India economy, China property market, Asian markets and gold. ( Watch)

Now you have been a keen China observer and China figures as one of your favourite markets, what has your reading of the economic data coming out of China such as GDP, PMI and also what are your thoughts on the real estate market in China where policy moves seem to have led to some kind of a slowdown?

Indeed we do see slight of overheating in the China property market. We think that Chinese government is taking the right move to cool down the property markets by kicking very focus and selective tightening measures. We do not expect that government will reverse the property tightening measures, so we expect the Chinese real estate market to see further correction in the next 6 to 12 months.

Recently we saw some rebound in transaction volume but we expect Chinese property price to see a further downside. So we continue to advise the investor to stay cautious on China property stock. Investor should remain highly selective to focus on those large big cap China property developers and do stay away from those property developers who have fragile financial position, as we expect there would be further downward pressure in property price so there would likely be further volatility in the China property stocks.

But how big is a concern in terms of inflation in your eyes in some of the growth economies of Asia like India and Indonesia, do you see further monetary tightening from here onwards?

Yes, we have bigger concern about inflation in Indonesia, India and we expect monetary normalisation in these two countries will continue, so we expect further rate hike in both India and Indonesia. And we expect the inflation outlook will remain the key concern of policy makers, so more visible policy tightening in India and Indonesia would be expected. And this goes well for the outlook for the local currency in these two countries that’s why Indonesian Rupiah and Indian Rupee are our favourite Asian currency exposure.

So Indian Rupee and Indonesian Rupiah are your favourite currency, but when it comes to equity markets, which select themes are you bullish on in India and how do you assess the strengths of the Indian economy?

In India we like the infrastructure and the consumption related sector. We remain bullish on the domestic growth outlook in India, in fact India is one of the most resilient Asian economies during the global economic downturn. We expect a strong cyclic growth driver in India will provide support for the domestic consumption in infrastructure stock. So the consumption and infrastructure sector are our preferred sector exposure in India.

But you are bullish on Asian equities going ahead in H2 what will be the triggers that will lead stock prices higher and how important is the fear or rather risk of double-dip in the global economy?

Sources -  http://economictimes.indiatimes.com/opinion/interviews/India-one-of-the-most-resilient-Asian-economies-Fan-Cheuk-Wan-Credit-Suisse/articleshow/6260665.cms